Interchange Corporation (NASDAQ: INCX), a leading provider of local and national paid-search services, today announced that it has signed a definitive agreement to acquire Inspire Infrastructure 2i AB…
…a Swedish Internet and wireless local-search technology company in a share purchase transaction. Under the terms of the agreement, the Inspire shareholders will receive an aggregate of $15 million in cash and will be eligible to receive up to 447,067 shares of common stock, which represents $7.5 million based on a 30-day trailing average, subject to the satisfaction of certain performance criteria over the next two years. Following the closing of the acquisition, Inspire will be renamed Interchange Europe.
Interchange plans to integrate Inspire’s leading search technologies, products and services with Interchange’s portfolio of local-search and advertising solutions powered by the company’s proprietary Keyword DNA technology. Interchange believes that this combination will allow the company to offer a world-class search and advertising platform supported by the latest Internet and wireless local-search technologies in both the United States and European markets.
“As previously discussed, our five-point growth strategy includes enhancement of our local-search services, international expansion and acquisitions. We believe that this transaction achieves all three of the above,” said Heath Clarke, Interchange CEO. “Inspire has an accomplished team of people and is a natural strategic fit for us. This transaction builds on the strengths of both companies. It expands our reach in the global market by allowing us to provide our advanced local-search services in all major Western markets as well as to multi-national customers.”
Inspire’s clustered local-search technology utilizes innovative search algorithms to offer superior relevancy, speed and accuracy for local business search via the Internet and wireless devices. Inspire’s search engine is based upon a collaborative content architecture that augments business listings with an array of local content, including online vertical content, classifieds, reviews, and businesses web information and content.
“The driving forces for this deal are the expanded opportunities in our respective markets, gained by integrating our technologies and business strategies. We believe Interchange Europe will have a commanding position in the emerging European local-search markets,” said Antony Waldorf, Inspire CEO. “We are very pleased to represent Interchange’s European operations and look forward to delivering value to Interchange shareholders.”
Interchange plans to expand the services offered to US and European customers to include:
Local and national search solutions built on proprietary Keyword DNA technology
Low-cost private label pay-per-click advertising platforms
Enhanced wireless search using SMS, MMS, JPhone, Symbian, SIMToolkit, WAP, and wireless PDA
Local-search indexing technology for classifieds, white and yellow pages, as well as other local data sources
Directory assistance call center search technologies
High-volume search distribution network technologies
Inspire has delivered search solutions in five languages across six European markets including the UK, Ireland, Spain, Holland, Portugal, and Finland. Inspire is headquartered in Stockholm, Sweden with subsidiaries in London, England and Madrid, Spain.
The closing of the transaction is subject to the completion or satisfaction of certain conditions precedent. The transaction is expected to close in the first quarter of 2005. The acquisition will be made by Interchange Europe Holding Corporation, a newly created, wholly-owned subsidiary of Interchange.
murdok | Breaking eBusiness News
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